• 5 minutes Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 6 hours WTI @ 67.50, charts show $62.50 next
  • 1 hour Mike Shellman's musings on "Cartoon of the Week"
  • 6 mins Venezuela set to raise gasoline prices to international levels.
  • 11 mins Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 19 hours Tesla Faces 3 Lawsuits Over “Funding Secured” Tweet
  • 17 mins Renewable Energy Could "Effectively Be Free" by 2030
  • 1 hour Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 6 hours Batteries Could Be a Small Dotcom-Style Bubble
  • 4 hours Again Google: Brazil May Probe Google Over Its Cell Phone System
  • 3 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 15 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 15 hours California Solar Mandate Based on False Facts
  • 4 hours Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
Philippines Cracks Down On Fuel Pirates

Philippines Cracks Down On Fuel Pirates

Though fuel smuggling in Southeast…

Is Deepwater Drilling More Profitable Than Shale?

Is Deepwater Drilling More Profitable Than Shale?

Conventional wisdom in oil markets…

FirstEnergy Coal, Nuclear Business Files For Bankruptcy

First Energy Nuclear

Days after FirstEnergy approached the Department of Energy with a request for what would have effectively been a bailout package, the company announced that its coal subsidiary FirstEnergy Solutions and nuclear unit FirstEnergy Nuclear Operating Co. filed for Chapter 11 bankruptcy protection.

The move was unsurprising, coming so soon after the parent appealed to the government for help as the coal and nuclear business have found it increasingly difficult to compete with cheap natural gas as power generation fuel. The appeal specifically concerned several coal-fired and nuclear power generation plants in Pennsylvania and Ohio that would be unable to survive without government intervention.

Don Moul, head of FirstEnergy Solutions, which operates the plants, said “Though the plants have taken aggressive measures to cut costs, the market challenges facing these units are beyond their control.” Indeed, the rise of natural gas thanks to fracking has made life very difficult for coal plants and NPPs in the competitive market environment.

As a result, FirstEnergy said in a statement, FirstEnergy Solutions will be restructured into a fully regulated utility “with a stronger balance sheet, solid cash flows and more predictable earnings.” FENOC will also be restructured. As of end-March, both companies will be excluded from FirstEnergy’s financial reports.

Related: BMW Caught Cheating Emissions Tests

Over the past few years utilities have been forced to shutter unprofitable coal-fired and nuclear power plants before their time, and the government has not turned a deaf ear to their plight, in keeping with the administration’s prioritization of the fossil fuel industry.

Last year, Energy Secretary Rick Perry even proposed a plan for subsidizing coal and nuclear plants for providing base load generation, that is, round-the-clock power, but the plan was rejected by the utility regulators, who said they will study the national grid’s resilience to supply interruptions. Many grid operators said they are already factoring in everything that has to do with their grid’s resilience to disruptions.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News